The Quick Read: Yes, through two routes: paying all cash, or an asset-based mortgage that is reviewed around documented savings instead of paychecks. A DSCR rental loan is not a route when you will live in the home. Each path has its own rules, and the details follow.
- All cash: no lender underwriting, but your liquid reserves drop by the full price.
- Asset qualifier path: eligible assets must cover the entire loan, and no employment or income is documented. This is subject to underwriting.
- Asset depletion path: your balances, after credit percentages, become a monthly qualifying income that runs through a debt-to-income test.
- Use decides the loan: a winter home you occupy is a second home, and a rental-property loan does not fit it.
What Does “Savings Alone” Actually Mean?
It can mean three different things, and only two of them work for a retiree with little paycheck income. You can pay cash. You can use savings as a down payment and still prove income. Or you can use savings as the basis for the loan itself.
The second meaning is where many snowbirds get stuck. A traditional second-home mortgage asks for pay stubs, traditional personal-income documentation, or steady pension and Social Security income. If your wealth sits in brokerage accounts, certificates of deposit, and retirement balances, that test can undersell you badly.
Across the wholesale network Lendmire works with, asset-based underwriting exists for this exact borrower. That includes retirees, people who sold a business, heirs, early-retired professionals, and households living off a portfolio. Their balances are large, and their documented income is small.
Lendmire is a broker. It arranges these loans through select lenders. The lender reviews each file individually, and nothing here is a commitment to lend.
Path One: Paying All Cash
Paying cash is the simplest route, and it is open to anyone who has the money. No lender underwrites you, there is no loan to qualify for, and you skip interest entirely. Northwestern Mutual lists the same trade-offs: no interest cost, and a possible edge over other buyers.
Cash still has paperwork. Sellers and title companies commonly ask for proof of funds, which means recent statements showing the money exists. You also still pay title charges, transfer costs, and insurance. Skipping the mortgage removes the loan, not the closing costs.
The real price of cash is liquidity. A winter home is a part-year asset, and it ties up money you may need for health costs, a market drop, or repairs. Tax treatment varies, since retirement withdrawals can create a tax bill and the IRS applies its own day-count test in Publication 527 that is separate from any lending test, so consult a qualified tax professional.
The Post-Closing Liquidity Test
Before you wire cash, run this checklist.
- Count the liquid money left after closing, not before.
- Make sure it covers both homes’ carrying costs for a long stretch.
- Keep an emergency cushion that does not depend on selling investments in a down market.
- Account for furnishing, setup, and absentee upkeep.
- Ask whether a mortgage would leave you better protected.
If the answer to the last question is yes, a loan may be the safer choice even though you can afford the cash.
Path Two: Savings as a Down Payment Only
Using savings for a down payment while proving income the usual way rarely works for a retiree without a paycheck. The lender still needs to see repayment ability. Large balances help with the down payment, but a conventional file wants income that shows up on traditional personal-income documentation or pay records.
Some retirees do qualify this way. If you draw a pension, Social Security, or steady retirement withdrawals that can be documented, that income can carry a loan. The problem is the household whose income is thin on paper and whose assets are thick.
If that describes you, skip to the third path. It was built for you.
Path Three: Savings That Qualify the Loan
An asset-based mortgage lets your documented balances do the qualifying. Lendmire’s asset-based mortgage program is organized into paths, each covered in its own section below. A borrower is reviewed on one path at a time, and the figures never blend. Every number below is a typical program figure through select lenders, subject to underwriting.
The Asset Qualifier Path
The asset qualifier path covers the whole loan with eligible assets. Your usable assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented.
That is not a no-documentation loan. Your assets are documented in full with statements, and the file is fully underwritten. The program skips traditional personal-income documentation, pay stubs, and employment verification.
| Asset type | Share of balance that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Accounts combine. Here is an illustrative example, and the lender’s own calculation governs. Take an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets, which covers the loan on assets alone.
The main parameters on this path:
- Leverage: up to 80% loan-to-value on a purchase and 75% on a refinance, for a principal residence or second home.
- Loan size: up to $4,000,000.
- Credit: a 600 minimum score.
- Seasoning: 60 days, plus two months of statements for each qualifying account.
- Reserves: none required at or below 75% loan-to-value. Above that, the lender sets them, so a purchase at 80% may carry a reserve requirement. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Seasoning is the waiting period money must sit in an account before it counts. Moving a pile of cash in last week usually will not work.
The Asset Depletion Path
The asset depletion path turns your balances into income. Eligible assets, after the haircuts below, are divided by 60 months into a monthly qualifying income. That income must carry the housing payment and your other debts through the debt-to-income test.
| Asset type | Share of balance that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
An illustrative example, again governed by the lender’s own math: $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000) is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts.
The main parameters on this path:
- Leverage on a second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Loan size: $125,000 to $3,500,000.
- Credit: the lender’s score and loan-amount matrix.
- Minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance. It is never below $250,000 liquid when depletion is your only income source.
- Statements: at least 120 days old at application, plus the most recent statement within 45 days.
Cash-out proceeds never count as qualifying assets on this path. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, and non-vested restricted stock units are not eligible. Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible on either path. The documented route is moving them into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
In deals like this, the most common surprise is a balance that looks large but counts for much less. Retirement accounts and securities lose value to haircuts, and money parked in an ineligible category counts for nothing. Add up your usable assets before you shop for a house.
Both paths produce a consumer mortgage, so standard consumer mortgage disclosures apply.
Second Home or Investment Property?
Your actual use decides the loan, not your intent to call it something else. A winter home you stay in for months is a second home. A property you buy to rent out and rarely visit is an investment property.
| Factor | Second home | Investment property |
|---|---|---|
| Who uses it | You, for part of the year | Tenants |
| Loan type | Consumer mortgage | Business-purpose loan |
| What drives review | Your assets or income | Rental income covering the payment |
| Fit for a snowbird | Yes | Only with minimal personal use |
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
The federal line is concrete. The CFPB’s commentary on business-purpose credit says a property cannot be treated as non-owner-occupied if you expect to occupy it more than 14 days in the coming year. Its own example is a beach house the owner uses for a month and rents out the rest of the year. That house is owner-occupied.
A snowbird who stays several winter months is far past 14 days. Putting the home in an LLC or collecting a little rent does not change that, because occupancy reflects actual use. Closings on true investment purchases include a business-purpose and occupancy statement. Signing one for a home you plan to use yourself is a misrepresentation, and it can put you in default on the note.
Lenders differ on partial or intermittent personal use. Describe your real plans to your broker up front instead of hoping the file reads the right way.
If you later stop using the home and rent it full time, a rental-property loan could become relevant. That is a refinance conversation for later, not a purchase strategy for now.
Which Lane Fits You?
Match your balance sheet to the route. Here is how the trade-offs compare.
| Route | What it protects | What it risks |
|---|---|---|
| All cash | Simplicity, no loan | Drained reserves |
| Asset qualifier path | Liquidity, no income documented | Statements and seasoning required |
| Asset depletion path | Works with mixed assets | Haircuts shrink usable balances |
| Cash plus a loan | Balanced liquidity | A smaller loan still needs a path |
Many winter buyers land on a mix: some cash, plus a loan that keeps a healthy reserve in the bank. The stronger play is often the loan, even for someone who could pay cash, because liquidity is what protects you in a bad year. Investors who own rentals have a second reason to keep cash on hand, since those properties need reserves too. Cash buyers who skip a loan do give up flexibility, though, and some people value a debt-free home more than flexibility. That is a genuine judgment call.
The Texas Angle
You are a Texas borrower, so the program’s footprint matters. Lendmire’s consumer mortgage lending is licensed in 16 states, and Texas and Florida are on that list. Not every popular winter destination is. If your winter home sits in a state outside that footprint, this program cannot place the loan.
The program figures do not change by state. State facts such as local prices and insurance costs are context, not program parameters. Winter homes carry costs in two places: insurance that is often higher on a second home, property taxes, HOA dues if any, utilities, and upkeep while the house sits empty. Price those out before you settle on a purchase price.
Also separate two questions that people blur together. The lending test asks how you will use the home and whether your assets or income support the loan. The tax test is a different exercise with different day counts. Passing one says nothing about the other.
Mistakes That Sink Snowbird Files
- Calling a winter home an investment. Misstating occupancy is the most serious mistake on this list.
- Moving money in at the last minute. Seasoning requirements mean fresh deposits may not count.
- Counting the wrong balances. Haircuts and ineligible asset types cut usable assets below what you expected.
- Draining liquidity for a cash purchase. A paid-off house is not much comfort during a medical bill or market drop.
- Assuming rent will qualify you. Projected rental income does not qualify a personal-use second home.
- Treating the figures as offers. Leverage caps and credit floors are ceilings and floors, and each file is underwritten individually.
Key Terms Defined
Asset qualifier path: the route where eligible assets must cover the whole loan and no income is documented.
Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income.
Seasoning: the waiting period money must sit in your account before a lender counts it.
Debt-to-income test: the check of whether your monthly income can carry the housing payment and other debts.
Proof of funds: recent statements that show a cash buyer actually has the money.
Business-purpose loan: a loan for an investment property you will not live in, reviewed differently from a home loan.
Frequently Asked Questions
Can I buy a second home with no income?
Yes, through asset-based underwriting. On the asset qualifier path, your usable assets must cover the entire loan, and no employment or income is documented. The file is still fully underwritten, with your assets documented through statements, subject to lender guidelines.
Do I need a mortgage at all?
No. If you have the savings, you can pay cash. Just keep enough liquid money after closing to cover both homes’ costs and your emergency needs, because cash buyers still pay title, transfer, and insurance costs.
Do retirement accounts count toward qualifying?
They do, at reduced percentages. On the asset qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the asset depletion path, retirement accounts count at 70% at any age.
Can a DSCR loan buy my winter home?
Not if you will live in it. DSCR loans are for non-owner-occupied rental property, and the federal business-purpose line is more than 14 days of expected personal occupancy. If the winter home is bought mainly as a rental with minimal personal stays, a DSCR loan may be an option, subject to lender guidelines.
What if I rent the winter home out part of the year?
Light rental use alone does not change how a lender classifies a home you occupy. Lenders vary on partial or intermittent personal use, so describe your real plans to your broker before you apply. Misstating occupancy creates risk for the whole file.
Next Step
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals. Reach the team at 828-256-2183.
A Texas snowbird with a large portfolio and a modest pension is exactly the borrower this underwriting was built around, so your statements should come before your traditional income documentation.
Lendmire’s asset-based mortgage in Texas page presents the program for Texas borrowers.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors who want the broader program framework can review how DSCR loans work.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Northwestern Mutual, buying a house in cash: pros and cons
3. CFPB, Regulation Z commentary on business-purpose credit
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Relocate to Florida and Buy a Home on Assets Before You Have Local Income? · Can a Florida Retiree Get a Mortgage on Savings and Investments Alone? · Can You Buy a Second Home in Georgia on Assets Instead of Income?
Guides: Asset-Based Mortgage in Texas
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.